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High Tech Farming Deal Reveals VC ‘s Added Value

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December 11, 2014

A feature article in Grainews indirectly describes how Farmers Edge, which offers high-tech crop solution and services farmers, benefitted from raising capital from Kleiner Perkins Caufield & Byers. The CEO of the company, founded in Winnipeg, Manitoba, a long way from Silicon Valley, said, “They did our market research for us” during the due diligence phase, explaining that Kleiner Perkins interviewed 20 Farmers Edge customers. When KPCB found out that current Farmers Edge customers were satisfied but hadn’t signed up their entire farm, they told the CEO that by lowering prices, Farmers Edge could entice current customers to sign up all of their acres, as well as attracting new clients, which could aid in mass adoption. This kind of thing is an example of the value-add that VCs often claim to add. The capital came from KPCB sustainability flavoured venture fund. (Image source: Farmers Edge)

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